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Overeducation among Swiss university graduates: determinants and consequences
[Nicht ausbildungsadäquate Beschäftigung bei Universitätsabsolventinnen und -absolventen – Determinanten und Konsequenzen]

Author

Listed:
  • Andrea Diem

    (Swiss Coordination Centre for Research in Education (SCCRE))

  • Stefan C. Wolter

    (University of Berne)

Abstract

This study uses the Swiss Graduate Survey data to investigate the determinants of job-education mismatch and the associated consequences on earnings while controlling for various ability and motivation factors, as well as socio-demographic, labor market and institutional characteristics. The results indicate that the likelihood of a job-education mismatch is significantly influenced by individual performance factors, such as final grades and study duration, and that the phenomenon affects approximately 15 % of university graduates. The study also shows that more than one-quarter of the individuals with a job-education mismatch 1 year after graduation are still working in a job that does not require a university degree 4 years later. In monetary terms, job-education mismatch is associated with a yearly wage penalty of approximately 4–10 % in the short to medium term.

Suggested Citation

  • Andrea Diem & Stefan C. Wolter, 2014. "Overeducation among Swiss university graduates: determinants and consequences [Nicht ausbildungsadäquate Beschäftigung bei Universitätsabsolventinnen und -absolventen – Determinanten und Konsequenz," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 47(4), pages 313-328, December.
  • Handle: RePEc:spr:jlabrs:v:47:y:2014:i:4:d:10.1007_s12651-014-0164-3
    DOI: 10.1007/s12651-014-0164-3
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    References listed on IDEAS

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    More about this item

    Keywords

    Job-education mismatch; Overeducation; Wage returns; University graduates;
    All these keywords.

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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